Already returned to India - Challenges

[dps28]

Hi, I've been back to India since 2003 for study basis. Being a Canadian Citizen and also an OCI, i have couple of doubts.

1. Since I came back to India about 8 years, i studied for 5 years. Got OCI inbetween. Do i still need to file tax returns in Canada? (my dad has been doing that in Canada for all those years till now).

2. I'm looking forward to a good job in India. The employer is in US but the business mainly would be done in India. So the income would be generated from India. Do i pay taxes to India or Canada?

3. Do i need to give up Canadian Citizenship and become Indian Citizen so as to secure myself because i don't plan to return to Canada in future. But i definitely don't want to give up my Canadian Passport also.

Please let me know your suggestions and opinions.

Thanks!
Dps28

[KirKS]

1. Since I came back to India about 8 years, i studied for 5 years. Got OCI inbetween. Do i still need to file tax returns in Canada? (my dad has been doing that in Canada for all those years till now). [/quote]
Just call up the Canadian tax authorities or consulate for further guidance.

2. I'm looking forward to a good job in India. The employer is in US but the business mainly would be done in India. So the income would be generated from India. Do i pay taxes to India or Canada? [/quote]
You are technically a Resident & ordinary Resident (ROR). So India will tax you based on residency.

[LIST=1]

You are a resident of India.

Your employer may be in US.

Your citizenship is Canadian.
[/LIST]

You will definitely pay taxes to India if you live in India for most part or full year.

You may or may not pay taxes in US depending upon how you setup your payments (W2, consultant, S corp etc.)

I am unsure about Canadian taxes, but could guess you will at least file a return being a citizen of that country, showing credit for taxes paid in India.

Please check with experts using this as a guideline.

3. Do i need to give up Canadian Citizenship and become Indian Citizen so as to secure myself because i don't plan to return to Canada in future. But i definitely don't want to give up my Canadian Passport also. [/quote]
If you read your two sentences closely, they are contradicting.

Decide on why you became a Canadian citizen again, if not born there.
List down the reasons as to why you want to take up Indian citizenship. OCI is a fairly good option barring 4 key things (voting, political office, joining military & agricultural land), for living in India. It's as good as being an Indian citizen, keeping emotional 'belonging' aspect out. So if you were thinking of taking Indian citizenship from tax perspective, it may not be worth it.

Ask further questions to get your things cleared.

Good luck,
-K